Below are the trades from today’s Income Madness Live Trading Session.
Action on Existing Positions
I am recommending we close our SPDR S&P Regional Banking ETF (KRE) put and Microsoft (MSFT) bull put spread.
KRE Jan Monthly (1/21) 76 Put
Current Stock Price: $75.10
Cash in Hand: $0.46
Action: Buy to close the KRE Jan Monthly (1/21) 76 Put for around $1.06, but adjust as needed to close today
Loss: $0.60, or $60 per contract
MSFT Jan Monthly (1/21) 295/290 Put Spread
Current Stock Price: $310.06
Cash in Hand: $0.29
- Buy to close the MSFT Jan Monthly (1/21) 295 Put for around $0.09
- Sell to close the MSFT Jan Monthly (1/21) 290 Put for around $0.04
- Set initial debit limit at $0.05, but adjust as needed to close today
Profit: $0.24, or $24 per contract
TRADE ONE: Sell to open the Kroger Co. (KR) Jan Week Four (1/28) 48 Put for around $0.61. You can go as low as $0.52, but please don’t start there and always use limit orders. (Current stock price: $48.58)
TRADE TWO*: Sell to open the Salesforce (CRM) Jan Week Four (1/28) 215 Put for around $0.86. and buy to open CRM Jan Week Four (1/28) 210 Put for around $0.49. Set initial credit limit at $0.37. (Current stock price: $229.83)
*If you are new to spread trading, please watch my Bull Put Spread Coaching Session before entering the trade.